What type of innovation involves changes that significantly alter how consumers interact with the product?

The correct answer is radical innovation, which refers to innovations that lead to significant changes in the way consumers interact with products or services. This type of innovation often introduces new technology or models that transform markets and consumer behavior. For instance, the introduction of smartphones radically changed how people communicate, access information, and utilize applications, thereby altering everyday life significantly.

Radical innovation represents a profound shift, rather than a more incremental improvement. It encompasses breakthroughs that can create entirely new industries or fundamentally reshape existing ones, drastically affecting consumer experiences. In contrast, other types of innovations, like continuous or dynamically continuous innovations, involve smaller, more gradual updates, such as incremental improvements in features or design that do not change the fundamental interaction between the consumer and the product. Disruptive innovation, while also transformative, often refers specifically to innovations that disrupt existing markets by providing a lower-cost alternative that eventually overtakes established players, rather than focusing solely on the change in consumer interaction.